The Public Investment Fund (PIF) is a sovereign wealth fund owned by Saudi Arabia, founded for the purpose of investing funds on behalf of the Government of the Saudi Arabia.
Video Public Investment Fund of Saudi Arabia
History
The Saudi Arabian Public Investment Fund (PIF) was established in 1971 by Royal Decree M/24 to provide financing support for projects of strategic significance to the national economy.
Since its inception, the PIF has played an important role in the financing of vital projects in the Kingdom, including in the oil refining, fertilizer, petrochemical and electricity sectors. In July 2014, the Council of Ministers granted the PIF authority to fund new companies inside and outside the Kingdom, either independently or in cooperation with the public and private sectors, without the council's prior approval.
In March 2015, oversight of PIF was moved from the Ministry of Finance to the Council of Economic and Development Affairs (CEDA). As part of this process, a new Board was appointed, chaired by HRH the Crown Prince Mohammad bin Salman Al Saud.
Following these changes, the Board is taking steps to refine its investment capabilities and enable the fund to manage a broader portfolio of current and new assets, ensuring that it is aligned with the government's Vision 2030. The aim is to diversify government resources and the economy and to help unlock strategic sectors.
Maps Public Investment Fund of Saudi Arabia
Portfolio
PIF has a diverse portfolio made up of approximately 200 investments, of which around 20 are listed on Tadawul, the Saudi Stock Exchange. Example investments include:
- National Commercial Bank
- Riyad Bank
- Samba Financial Group
- Sanabil Investments
- Tadawul
- Gulf International Bank
- Ma'aden - Saudi Arabia Mining Company
- Saudi Basic Industries Corp
- Saudi Ceramics Company
- Saudi Telecom Company
- TAQNIA
Recent News
Beginning in 2015 the PIF began making a number of high-profile investments, including acquiring an 38% stake in South Korea's Posco Engineering & Construction Co. in July 2015 and establishing a sizable fund with French firms in October 2015. In June 2016, it was announced that the PIF was acquiring an approximate 5 percent stake in Uber for an investment of $3.5 billion, the largest ever single investment in the App-based ride sharing company. On 14 October 2016 Japan's SoftBank announced it had signed a memorandum of understanding with the PIF for the establishment of a London-based SoftBank Vision Fund which aims to invest up to $45 billion over five years in the tech sector.
In March 2016, it was announced that ownership of Saudi Aramco would be transferred to the PIF and that the Kingdom will seek to list 5 percent of Aramco's shares by 2017. The PIF expects to become the largest sovereign wealth fund in the world with assets of $2 trillion.
On May 20, 2017, during the Saudi-US CEO Forum which was part of President Donald Trump's official trip to Saudi Arabia, the Public Investment Fund (PIF) announced plans to "invest $40 billion in infrastructure projects, mostly in the U.S." Saudi Arabia, which is "working to diversify its economy" entered into business deals with General Electric, Lockheed Martin and The Blackstone Group. Blackstone, whose CEO and founder -- Stephen A. Schwarzman -- is a top supporter of President Donald Trump, entered into a non-binding memorandum by which the PIF committed $20 billion to the project. During the CEO Forum US-Saudi, arms deals were announced including a pledge to "assemble 150 Lockheed Martin Black Hawk helicopters" in Saudi Arabia, representing 450 jobs in Saudi Arabia" as part of the "$6 billion deal for Black Hawks."
See also
- The budgetary rule - concerning the usage of capital gains from The Government Pension Fund - Global
- Pensions in Saudi Arabia
- Economy of Saudi Arabia
- Sovereign wealth fund
- Ethical investing
References
External links
- Sovereign Wealth Fund Institute - Saudi Arabia bankers and advisors hired for possible massive sovereign wealth fund
Source of the article : Wikipedia
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